Driven by the explosion of digital photography, the highly competitive portable consumer electronics market is now mandating that products such as MP3 players, PDAs, digital cameras and cell phones provide Hi-Speed USB host control of external peripheral devices without a PC.

In addition, sales of many of the Company's products depend largely on sales of personal computers and peripheral devices, and reductions in the rate of growth of the PC, consumer electronics and embedded markets could adversely affect its operating results.

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